The Company's condensed and consolidated interim financial result for the half, together with the Appendix 4D and Management's Discussion and Analysis ("MD&A") for the corresponding period, can be accessed under Alkane's profile on www.sedarplus.ca, on the Australian Securities Exchange ("ASX") and on Alkane's website at www.alkres.com. All currency references in this press release are in Australian dollars except as otherwise indicated.
First Half 2026 Highlights: 1,2
Record Revenues: Gold equivalent sales for the half year of 74,094 ounces generated revenues of $404 million at an average gold price realized of $5,421/oz and an average antimony price of $41,023/t
Record Production: Gold and antimony production was 72,732 ounces and 391 tonnes, respectively; Company is on track to meet 2026 guidance.
Record Cash Generation: Adjusted EBITDA was $185 million with Cash Generated from Operating Activities of $154 million
Record income earned: Net profit of $65 million or 5.32 cents per share
Robust Financial Position: Cash, bullion and listed investment balance of $246 million
Conference call and webcast: Management will host a conference call and webcast to discuss the results of HY 2026 at 8:30 am EST (Toronto time) on 13 February 2026. Details are noted below.
Managing Director, Nic Earner, commented:
"Alkane has just delivered the strongest quarter in its history. During a period of high gold and antimony prices, the power of our three mine portfolio delivered exceptional operating results as they produced a record 42,767 ounces of gold and 267 tonnes of antimony, which generated record revenues of $256.7 million. Record revenues along with lower operating costs generated over $147 million of Adjusted EBITDA. The Company ended the quarter in a robust cash position which will provide the support for Alkane's growth plans. Given the strong performance to date, we move into the second half of the year with momentum and are on track to meet our production and cost guidance for 2026."
First Half 2026 Financial Highlights
_____________________________________1 Gold equivalent ounces calculated by multiplying quantities of gold and antimony in period by respective average market price of commodities in period, adding the two amounts to get ‘total contained value based on market price' and dividing that total contained value by the average market price of gold in period. I.e., AuEq = ((Au Produced x Au $/oz) + (Sb Produced pre-payability x 70% payability x Sb $/t)) / (Au $/oz). Average market prices for gold and antimony sourced respectively from LMBA daily PM price (www.lmba.org.uk) and Shanghai Metal Market Price (www.metal.com). Average market prices for December quarter were A$6,299/oz Au and A$30,245/t Sb and for September quarter were A$5,382/oz Au and A$33,859/t Sb using an AUD: USD exchange rate of 0.6565 and 0.6544 respectively. Gold equivalent ounce, cash operating cost and all-in sustaining cost (AISC) are non-IFRS performance measures with no standard definition under IFRS. For more details refer to the Non-IFRS Performance Measures section at the end of this press release.2 As the merger with Mandalay Resources completed on 5 August 2025, Alkane's FY2026 statutory reported production reflects production from Costerfield and Björkdal only from that date. See ALK announcement dated 9 Sep 2025 and titled ‘Alkane Announces Financial Year 2026 Guidance'.
The following table summarises the Company's consolidated financial results for the three and six months ended 31 December 2025 and 31 December 2024:
Financial and Operational Highlights
(Expressed in Australian dollars, except where indicated)
Three months ended
Six months ended
31 December
31 December
2025
2024
2025
2024
Financial Data
Revenue
256,721
59,247
403,950
121,500
Cost of sales
149,617
54,791
283,984
99,311
Gross profit
107,104
4,456
119,966
22,189
Net profit
67,573
1,901
64,898
13,156
Per share ("EPS"in cents)
4.95
0.31
5.32
2.18
Adjusted net profit1
69,732
1,535
72,474
13,311
Adjusted net profit per share (in cents)1
5.11
0.25
5.94
2.20
Adjusted EBITDA1,2
147,245
15,268
184,736
38,156
Cash operating costs per ounce gold eq. produced ($)1,3
2,031
2,249
2,106
2,011
All-in sustaining costs per ounce gold eq. produced ($)1,3
2,739
3,408
2,841
2,715
Average realised gold price ($ per ounce)1
5,785
3,582
5,421
3,498
Average realised antimony price ($ per tonne)1
42,488
-
41,023
-
Cash generated from operating activities
106,339
15,032
153,764
29,685
Sustaining capital expenditures1
20,257
9,580
35,580
18,057
Non-sustaining capital expenditures1
20,580
11,858
34,414
42,855
Total capital expenditure
40,837
21,438
69,994
60,912
Free cash flow1
65,430
(6,465
)
85,443
(31,344
)
Free cash flow per ounce gold eq. sold ($)1
1,484
(390
)
1,153
(901
)
1Average realised gold and average realised antimony price, sustaining and non-sustaining capital expenditures, cash operating costs and all-in sustaining costs, free cash flow, free cash flow per ounce gold eq. sold, adjusted EBITDA and adjusted net profit are non-IFRS performance measures with no standard definition under IFRS. Refer to the Non-IFRS Performance Measures section of the MD&A.
2Adjusted EBITDA excludes non-cash items such as impairment, foreign exchange and stock-based compensation. For more details refer to the Non-IFRS Performance Measures section of the MD&A.
3Cash operating costs and All-in sustaining costs per ounce were previously calculated based on ounces sold. Since Q1 2026, the calculation methodology has been revised to use ounces produced instead of ounces sold. Accordingly, the comparative figures for the previous quarter have been restated.
Revenue for Q2 2026 was $256.7 million, compared to $59.2 million in Q2 2025. The increase in revenue was mainly due to increased production and gold sales following the addition of Costerfield and Björkdal to the portfolio, combined with higher realised gold prices.
Operating costs totaled $102.8 million during Q2 2026, compared to $41.4 million in Q2 2025 with the $61.4 million increase mainly reflecting the larger Company following the combination with Mandalay (Costerfield $32.3 million and Björkdal $28.4 million). The operating costs included $13.7 million of inventory movement due to fair value uplift of stockpiles being expensed at Costerfield and Björkdal during the quarter (HY 2026: $40.9 million) following the provisional acquisition accounting.
Cash operating costs per ounce of gold equivalent produced were $2,031 in Q2 2026 compared to $2,249 in Q2 2025. Tomingley´s cash operating costs per ounce of gold during the quarter were $1,811 compared to $2,249 in Q2 2025, a 19% decrease due to a 49% increase in produced ounces of gold partly offset by higher operational costs, mainly due to higher processing costs which include the costs for the rental mobile crusher. The increase in the Group's cash operating costs per ounce was further exacerbated by the addition of Björkdal ($2,910/oz) and Costerfield ($1,701/AuEq oz).
Sustaining capital amounted to $20.3 million in Q2 2026, compared to $8.5 million in Q2 2025. The increase in sustaining capital was mainly due the addition of $15.7 million of capital expenditures following the combination with Mandalay (Björkdal and Costerfield at $12.6 million and $3.2 million respectively) off which $7.3 million was underground capital development at Björkdal. Additionally, capital required to maintain stable production at both acquired operations included ongoing equipment replacements totalling $6.9 million. This was partly offset by lower capital expenditures at Tomingley during the quarter as compared to Q2 2025 due to two underground truck refurbishments in the comparative quarter.
All-in sustaining costs per ounce of gold equivalent produced were $2,739 in Q2 2026, compared to $3,408 in Q2 2025. The AISC per ounce at Tomingley decreased to $2,216 for the quarter from $3,408 in Q2 2025, mainly due to the aforementioned increased gold production and offsetting increased cash operating costs coupled with lower sustaining capital expenditures.
Total capital ...
